Corporate law is the study of interactions between shareholders, directors, employees, lenders and other stakeholders. Corporate law is a part of the law of business associations. Other types of business associations may include partnerships or trusts or companies limited by guarantee.
Corporate law is about a large business that has a separate legitimate personality with limited liability or unlimited liability to its members or shareholders, who buy or sell their stocks based on the performance of the board of directors. It does business with firms that are incorporated or registered under the company laws of a sovereign state or their sub-national provinces.
Ten Lines on Corporate Law in English
We have created here a set of Ten Lines on Corporate Law that will describe the law and its importance. Through these points, you will know that what corporate law is, when it was passed, who controls it and what benefits it provides to the people.
This set of Ten Lines on Corporate Law will also help students to know about this law and they may use these facts in their academic writings to make them more fascinating and precious.
We have tried to provide these special points in simple sentences for the reach of every reader and hoping that you will appreciate our work.
10 Lines on Corporate Law – Set 1
1) The corporate law is the most important legislation that empowers the Central Government to regulate the formation and functions of a company.
2) It was passed by the Parliament of India in 1956.
3) This Act determines the registration of the formation of companies and the responsibility of their directors and secretaries.
4) The Companies Act, 1956 is administered by the Federal Government of India through the Ministry of Corporate Affairs
5) The Act empowers the government to regulate the formation of a company and control the management of a company.
6) The primary function of the Ministry of Company Affairs is the administration of the Companies Act 1956, and to regulate the functions of the corporate sector.
7) The basic objective of the corporate law is to the legitimate recognition of the shareholding and creditors' legitimate interests and the managements' duty not to prejudice their interests.
8) It also makes provision of better and effective control and management for shareholders.
9) This law sets the maximum limit on shares of profit payable to management as a prerequisite for the service rendered.
10) The corporate law also ensures the monitoring of transactions where there is a possibility of contradiction between duty and interest.
Another set of Ten Lines on Corporate Law has been bestowed below for perusal of our avid readers that will clear their concept to understand the basics of the Corporate Law. These special lines are created in simple language by which you can know about it.
This set of Ten Lines on Corporate Law is also useful for students to enhance their knowledge about this topic. They can make a career as a corporate lawyer in the future.
10 Lines on Corporate Law – Set 2
1) A company is defined as a voluntary association of individuals formed for the purpose of doing business which has a specific name and limited liability.
2) In India, the Corporate Law/Companies Act, 1956, is the most important law which empowers the Central Government to regulate the creation, financing, functioning and winding up of companies.
3) The Act has procedures related to organizational, financial, managerial and all relevant aspects of the company.
4) It provides the powers and responsibilities of directors and managers, company meetings, keeping, and auditing of company accounts, powers of inspection, etc.
5) The Registrar of Companies (ROC) regulates the incorporation of new companies and the administration of ongoing companies.
6) The Corporate Law protects the interest of the shareholders and lenders.
7) It provides adequate powers to the government to interfere in the functioning of the company in the public interest.
8) This law also ensures fair and real disclosure of the functioning of the company in its annual balance sheet and profit and loss account.
9) In this way, the Corporate Law sets appropriate norms of accounting and audit.
10) It also helps to achieve the ultimate objectives of the social and economic policy of the government.
In response to the changing business environment, the Companies Act, 1956 has been amended from time to time to bring more transparency in corporate governance and protect the interests of small investors, depositors and debenture holders, etc.